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#SEC on #Celsius Chapter 11 #NovaWulf Bid after Judge Glenn request to comment - they have no comment on the bid protections motion and also said they "do not yet have all the facts and details that may be necessary to fully evaluate the transactions." cases.stretto.com/public/x191/11…
#Celsius Shareholders & Creditors Important Update youtube.com/live/l9PQxKQZ7…
Post YouTube AMA for the latest updates on #Celsius Chapter 11 twitter.com/i/spaces/1lDGL…
The states are also not taking a firm position until they can see the actual disclosures. They aren't aware of any specific issues with the general plan outline and are not opposing the bid protections motion at this time. cases.stretto.com/public/x191/11…
California added an addendum that Borrowers that elect Treatment A might not conform to the California Financing Law @DavidJAdler1991 @CelsiusLoans @elveton101
Washington also added an addendum stating that the Uniform Money Services Act of Washington and Consumer Loan Act of Washington require licenses that may still be required even if they are only servicing existing loans @DavidJAdler1991 @CelsiusLoans @elveton101
Remember when I used to get bashed on spaces for bringing up regulations as the key to getting out of Chapter 11? #Celsius filed a statement about the regulatory qualifications of #NovsWulf & preparations to address regulatory compliance issues. Read here: cases.stretto.com/public/x191/11…
NewCo will only interact with retail with respect to settlements or the administration of their Claims under the Plan & will provide no trading or market-making services. It will provide services to US Qualified Institutional Buyers & offshore investors only ($5m net worth+)
To address some of the bid protection concerns, they propose delaying the approval of $5m of the proposed Expense Reimbursement until the Disclosure Statement has been approved to limit exposure until the plan process has progressed.
They mention ESTs will have a secondary market on the Provenance Blockchain, an SEC-regulated ATS; that fiat transactions will utilize Figure Payments Corp., which has MTLs in 49 states. Anchorage, which is exempt from MTL requirements can make transfers in all 50 states.
If they are unable to distribute Liquid Crypto on the effective date, the debtors can make distributions in fiat. They are finalizing a partnership with Anchorage, the only federally licensed bank able to custody crypto assets, to serve as the custodian for NewCo Assets.
NewCo plans to maximize value of illiquid assets via mining business, direct $ETH staking & realization of the PE & Venture Capital investments, structure settlement servicing of the existing retail borrowers, and managing the institutional loan portfolios.
ESTs and MSTs under the plan will be issued to creditors under section 1145 of Bankruptcy Code. Celsius, UCC & #NovaWulf share same philosophy -- feedback from the regulators now allows for meaningful iteration of the Plan, if necessary, thereby creating the best odds of success.
I’ll share updates from my meeting with #NovaWulf on my AMA tomorrow after the YouTube video on my assessment of the Series B ruling. Set a reminder here: twitter.com/i/spaces/1lDGL…
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